Healthscope willing hand Northern Beaches Hospital back to NSW Health

Healthscope says it is willing to start discussions about returning Sydney’s Northern Beaches Hospital to NSW Health following the government’s ban on private-public partnerships.

Sydney’s Northern Beaches Hospital. Picture: NewsWire / Max Mason-Hubers

Healthscope says it is willing to start discussions about returning Sydney’s Northern Beaches Hospital to NSW Health following the government’s ban on private-public partnerships.

Healthscope, which has an agreement to run the hospital under a public-private partnership until 2038, is up for sale and facing solvency issues, with its lenders recently agreeing to a payment standstill while owner Brookfield attempts to find a buyer.

The NSW government recently introduced a policy that prevents further use of PPPs at acute care hospitals, and Healthscope’s management of the hospital has been marred by scrutiny around the death of two-year-old Joe Massa, who died after he received care at NBH.

His parents took him to the hospital on September 12 after he began vomiting. Elouise and Danny Massa said they were forced to wait two hours to get a bed and Joe was wrongly triaged into a lower priority despite having a high heart rate and severe loss of fluid.

He was transferred to Sydney Children’s Hospital in Randwick, where he suffered cardiac arrest about three hours after arriving. He died as a result of brain damage.

NSW Premier Chris Minns last month announced a ban on all future public-private partnerships at acute hospitals and has also prevented future governments from entering into partnerships that could limit control over hospital services.

Known as Joe’s Law, the ban ensures critical public services such as acute hospitals remain in public hands and are safeguarded from privatisation.

Healthscope chief executive Tino La Spina acknowledged that operating NBH as a public-private partnership was no longer compatible with the government’s objectives.

Mr La Spina said returning NBH to NSW Health would be best for patients, staff and the community if that was the government’s preferred objective.

“As the state’s appointed operator, we recognise we must work in alignment with the government’s objectives for the health system overall, rather than in conflict with them,” he said. “The public pressure brought about by the change in policy re public-private partnership structures has created uncertainty about the NBH future and this has put strain on NBH’s people and operations.

“In the current circumstances, we believe NBH will operate more effectively as part of the public hospital system and its future is assured.”

NSW Treasurer Daniel Mookhey said after the way Healthscope had managed this partnership, the healthcare provider should not expect to walk away with a profit.

Mr Mookhey noted Healthscope’s owners was engaged in a market process potentially seeking to exit the business, but the government would be watching to ensure no one tried to make a windfall gain at the expense of the people of NSW.

“The government will engage with Healthscope management after questions of its ownership and whether it remains a going concern are resolved,” he said.

NSW Health Minister Ryan Park said the government’s position had been clear that it did not support public-private partnerships being imposed on NSW’s acute hospitals.

Originally published as Healthscope willing hand Northern Beaches Hospital back to NSW Health